Housing affordability is finally seeing some relief, offering a glimmer of hope for buyers navigating high rates and tight inventory. In this week’s news roundup, we highlight three major trends shaping the real estate market: the best affordability levels since 2023, a spike in investor-driven purchases, and an influx of cash buyers targeting affordable luxury markets. These dynamics are redefining affordability across key metros and influencing who’s getting into homes—and how. For mortgage and real estate professionals, staying in tune with these affordability shifts is more essential than ever.
Affordability Hits Highest Point Since 2023
Read the Full Story → Scotsman Guide
Housing affordability improved in September, reaching its strongest level since early 2023. The Mortgage Bankers Association (MBA) reported that the national median monthly payment applied for by purchase applicants fell to $2,155.
This shift in affordability comes as home prices softened slightly and incomes rose modestly, leading to a 1.5% drop in the MBA’s Purchase Applications Payment Index. It’s a small but important move toward greater affordability for many potential buyers.
Even amid high mortgage rates, this bump in affordability may encourage more sidelined buyers to re-enter the market, signaling renewed momentum heading into year’s end.
Investors Drive Market, Affecting Affordability
Read the Full Story → CNBC
Investor activity hit a five-year high in Q2 2025, with 19% of all home purchases made by investors, according to Redfin. These buyers are primarily seeking single-family rentals, attracted by softening prices and strong rental demand.
A major factor: most of these investor deals are cash purchases. By avoiding today’s high interest rates, investors gain a strategic edge—and in doing so, they often compete directly with traditional buyers, impacting affordability in key markets.
The ripple effect is real. As investors scoop up homes, especially in lower-priced segments, they further strain affordability for first-time and financed buyers.
Cash Buyers Flock to Affordable Luxury Metros
Read the Full Story → Realtor.com
A new trend is emerging: cash buyers are increasingly drawn to metros offering a blend of upscale living and relative affordability. Realtor.com highlights cities like Tampa, Charlotte, and Colorado Springs as prime examples.
These affordable luxury markets offer a compelling mix of lifestyle and price, attracting well-capitalized buyers looking for value. In some areas, cash buyers now account for more than 40% of all home sales.
As these cash-rich buyers enter the scene, they’re reshaping local affordability standards—often outpacing buyers who rely on financing and redefining what “affordable” really means in popular cities.
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